Emata, the agricultural finance solution for East African farmers, has announced its successful completion of a $2.4 million seed fund raise, comprising of $800,000 in equity and $1.6 million in on-lending capital.
The fundraise was backed by African Renaissance Partners, Norrsken Accelerator, Zephyr Acorn, renowned Swedish angel investor Marcus Boström; and global venture philanthropy firm, the Draper Richards Kaplan Foundation.
The funding will be used to expand Emata’s agri-loan offering across East Africa, both within its debut market of Uganda, and via imminent international expansion – which is most likely to be Tanzania. It will focus on scaling its core markets – dairy and coffee. A multi-crop company from inception, Emata’s other operations are oilseeds and maize, whilst expansion is also anticipated into potatoes.
As East Africa rapidly digitizes, Emata’s business model addresses East Africa’s lack of agricultural financing – by providing automated loans to farmers. This reduces cost and enables lending to smallholders at rates 5x more affordable than the informal loans they have often relied on to date. Instant lending and data-based decisions also benefits all farmers, without the need for collateral.
Emata has digitized the full lending process and is embedded in the agricultural value chain – via its partnerships with cooperatives and farmer-based organizations – which aids rapid scaling. Such partnerships also de-risk Emata’s business model, as they provide access to a direct source of repayment – as loan repayments are deducted by Emata’s partners on its behalf. By solving the financing challenge, Emata helps farmers raise their productivity, increase income and food production.
In 2022, Emata grew 7x year-on-year, is now live with 50 agricultural partners – reaching over 40,000 individual farmers and has disbursed $1 million of loans.
Bram van den Bosch, Founder & CEO of Emata,“We are thrilled to complete our $2.4 million seed fund raise, backed by high-profile, impact-oriented investors who recognize the huge potential of digital agri-loans in East Africa, and beyond. Emata dares farmers to dream big and eliminates traditional obstacles that have made agricultural finance unavailable for the vast majority.”